KARDAN LAND CHINA SIGNS AGREEMENT TO SELL EUROPARK DALIAN SERVICE APARTMENT BUILDING
Amsterdam, August 19, 2015 – Kardan N.V., active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that today its subsidiary Kardan Land Dalian Ltd. (the ‘Project Company’), a wholly owned subsidiary of Kardan Land China Ltd. (‘KLC’), signed a binding agreement (the ‘Agreement’) with Fraser Suite Dalian Company Ltd. (‘ the Purchaser’) to sell Building B of the Europark Dalian project (the ‘Project’) for a total consideration of approximately RMB 481 million (approximately EUR 68 million) (the ‘Consideration’). Fraser Suite Dalian Company Ltd. is a Chinese company belonging to the Frasers Centrepoint Ltd. group, a public company listed on the Singapore Stock Exchange. The Purchaser shall pay 10% of the Consideration within twenty-five working days from the date the Agreement has been signed.
The balance of the Consideration shall be paid in phases, subject to meeting certain conditions precedent and receiving certain approvals which are expected to be met or obtained during the development of the Project, as stipulated in the Agreement. KLC estimates that 50% of the Consideration will be received in 2015, 25% in 2016, 15% in 2017 and the balance (10%) in 2018. The delivery of the 262 serviced apartments and 14 parking spaces that Building B comprises is expected to take place in the fourth quarter of 2017 when the agreed upon interior construction has been finished in the already completed core and shell of Building B. The Consideration will be used by the Project Company to repay part of a bank loan and for further development of the Project.
The Europark Dalian Project, located in Dalian, comprises a shopping mall (Galleria Dalian), which has its grand opening this week, two Small Office Home Office buildings (Building A1 and Building A2, which have both been completed and of which nearly all apartments have been delivered), service apartments (Building B) and two still to be constructed luxury apartment buildings all situated around a green park. The total built area of the Project is expected to be 327,000 square meters. Besides being connected to Dalian’s new subway line, the Project also offers 2,200 parking spaces.
“This is an important transaction for Kardan Land China as this Agreement signifies the quality of the Europark Project, which offers its residents and consumers the combination of high quality living and retail space in an environmentally friendly setting. KLC focuses on co-operating with its clients and relations to achieve the best for all parties. The sale of Building B is evidence to this, and – after the sale of Building A – is another success for the Europark Project’ states Shouky Oren, Chairman of Kardan Land China and CEO of Kardan N.V.